Reduction of the inheritance tax in Andalusia.

Legislative Decree 1/2018, of June 19, establishes a series of reductions in matters of inheritance, both “mortis causa” (inheritance due to the death of the transferor) and “inter vivos” (regarding donations).

An automatic reduction is determined for both death and donations:

Mortis causa (inheritance due to deaths):

1. Improvement in the reduction of the tax base for the “mortis causa” acquisition of the habitual residence.
2. Autonomous reduction of the tax base for spouse and direct relatives, due to inheritance.
3. Regional reduction of the tax base for taxpayers with disabilities due to “mortis causa” acquisitions.

“Inter vivos” (donations):

1. Tax reduction for donating money to descendants for the acquisition of their first habitual residence.
2. Reduction of the tax for the donation of habitual residence to descendants with disabilities.
3. Reduction of the taxable amount for donating money to relatives for the constitution or expansion of an individual company or professional business.

These reductions also apply to non-residents when determining the taxable income at the time of inheritance.